Oxford Overview:
The
number of homes sold over the last six months is down over last year (a record
year) by 32.9%. The number of homes offeres for sale tarted 2018 with slightly over 4 months supply
and then dropped in March to less than 3 months. Remember a balanced market is 6 months’
supply. Since March the number of homes
offered for sale have increased every month and now sit at 5 months’ supply.
This will improve Buyer’s ability to negotiate marginally. Prices are up nicely by 7.5% over last year’s
record price increases. The average home across Oxford County is now worth $358,795
which is an increase of $25,097 for the first 6 months of 2018. If inventories continue to increase, we may
experience some leveling in price increases.
Home owners are now getting an average of 98.4% of their asking prices.
In my last report the number of homes available was lower and we were heavily
into bidding wars. This activity has cooled somewhat because of the continued
increase in available properties. Prices won’t likely fall as we are still
seeing an influx of Toronto Buyers cashing in on their leveling market. Based on this activity we can expect an
increase of about 7% to 8% for the year over 2017.
Woodstock:
Woodstock
is following the trend experienced above. The City accounts for 44.8% of sales
across Oxford County. This is down from an
average above 50% in past years as the County grows and diversifies.
Ok, so what
has transpired? The number of homes sold this year is down by 39.7% in the
first 6 months of this year following last year’s all-time record. We started 2018 with 4 months’ supply and
have been slowly increasing our supply of homes ever since, peaking in May
during this 6-month period at 5 months supply. As a defined Seller’s Market
(less than a 6-month supply of homes for sale),
We’ve
enjoyed nice increases in values for the first half of the year. The average
price of a home in Woodstock now sits at $$365,738. This represents and increase
of 7.7% or $26,014. Inventories declined
marginally in June as did sales. It now
takes an average of 35 days to sell the average home in Woodstock and home
owners are getting over 98% of their asking price. During February, March and April, homeowners
were getting 100% of asking and heavily into bidding wars. Remember this market is still growing and if
fewer home come to market over the months ahead, we will return to Bidding wars. Now is still a great time to sell or to buy.
Ingersoll:
The number of homes that sold in the first 6 months of this calendar year are off 40.7% versus the first six months of last year’s record year. This lower sales number is because of the fewer number of homes offered for sale compared to Oxford County as a whole. The number of homes was sitting at about 3 months average for the first 3 months. Now the number of homes offered has increased to about 4.5 months supply based on June sales activity. This lower availability than the rest of the County has translated into constant bidding for homes in Ingersoll in virtually every selling situation. Statistically Ingersoll home owners are getting better than 100% of their asking prices.
The number of homes that sold in the first 6 months of this calendar year are off 40.7% versus the first six months of last year’s record year. This lower sales number is because of the fewer number of homes offered for sale compared to Oxford County as a whole. The number of homes was sitting at about 3 months average for the first 3 months. Now the number of homes offered has increased to about 4.5 months supply based on June sales activity. This lower availability than the rest of the County has translated into constant bidding for homes in Ingersoll in virtually every selling situation. Statistically Ingersoll home owners are getting better than 100% of their asking prices.
So,
how are prices? The average home has
increased in value by 8% narrowing the gap between prices in Woodstock to
11.7%. The average home owner in Ingersoll has enjoyed a home value increase of
$23,796 to $322,838 for the first 6 months of 2018. Ingersoll is also enjoying
the fastest selling time at only 24 days. This aggressiveness should continue
if inventories remain well below 6 months’ supply.
Norwich:
Once
again, the number homes that sold during the first 6 months of 2018 have
returned to more normal levels. Number of homes sold is now down 26% over the
same record sales period of 2017. Norwich is now a “Market in Balance” in Oxford
County. The number of homes offered for sale jumped from a level marginally
below 6 up until May to a Buyer’s dream of a full year’s supply. This number
corrected itself in June to about 6.5 months’ supply. This upward pressure on
supply enabled Buyer’s to get about 97% of asking prices.
The
number days it takes to sell a home in this area has been steadily dropping to
where it sits at 29 days on average at the end of June. Many of these negative
factors for home owners have been offset by it’s proximity to Woodstock. The result is an increase in the average price upward by 3.1% or $11,625. House prices now sit at an average price of $381,935. This area
still sits with an selling price at 4% above Oxford County's average home price
Summary:
What
does all this mean? The market is
buoyant and will finish with a strong finish once again. Interest rates are
still at record lows. Remember demand is the key.
Example: If you are a Toronto Area resident about to
retire or kids have left for University, or you work from home and are sitting
on a home worth even $800,000 and you have a low mortgage… What would you do?? Move to Southwestern Ontario. Buy a beautiful dream home for even $600,000 and
put close to $200,000 into the bank for a rainy day. That is what is going to
continue to drive this market. I ofte refer to the average price in 2004 in Mississauga, when it was $240,000 and our trading area was at $200,000. Which Market is most likely to correct? There is no better time to buy your first
home, make a lateral move or move up! If
you are thinking of downsizing, wait until the market comes back into balance.
Please
share this update with anyone who will benefit…and ….Remember, Mary and I are
here to help you, your family, your friends, your co-workers. Call us with
their names, timing, phones and email and we’ll get to work saving them money.
There are differences between realtors. We are proud of our results and our
Friendships with our many Clients
Gib Heggtveit Mary Heggtveit
Broker Sales
Representative
RE/MAX
Centre City Realty Inc RE/MAX
Centre City Realty Inc
Cell: 519-535-3975 Cell: 51-535-7355
Gib@YourFavouriteRealtors.com Mary@YourFavouriteRealtors.com
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